China’s Path Towards High Income

In this research, we used the economic index of social stability risk assessment system. Looking at the economic situation on the basis of social stability, we selected five economic indicators (per capita GDP,GDP growth rate, the Gini coefficient, CPI, and the unemployment rate) for social stability risk assessment. The results suggest that by international comparison, the social stability in China at present has reached the middle-upper level, mainly benefiting from rapid GDP growth as well as low CPI and unemployment rates; by the longitudinal comparison, the social stability risk in China in recent years shows an increasing trend,suffering from widening gap between the rich and the poor as well as rising inflation pressures.At present,China faces an increasingly aged population,and weakening advantages in demographic dividend. The next five years will be critical to the success of transformation in the mode of economic development in China, and its avoidance of the middle income trap. The path to them relies on benefits from all the reforming efforts, and the keys, for their parts,rest in three steps.1) to develop and implement as soon as possible the Chinese version "income doubling plan",namely to establish a stable growth mechanism in national income that matches with the national economic growth, to enable the "olive" structure in its economy, to proliferate the medium income group, and to comprehensively unleash growth potential from domestic consumption.2) to accelerate the upgrading of the industrial structure, to promote capability for technological innovation in the manufacturing industry,and to accelerate the development of emerging industries of strategic significance and service sectors to enhance China’s capability to avoid the middle income trap.3) to pin greater importance to the guidance in people’s expectation as well as rational view of point on possible economic slowdowns in the future,so as to prepare favorable social circumstance for China to avoid the Middle Income Trap.